Chillers Market By Product (Water-Cooled, Air-Cooled), By Compressor, By Application - Global Industry Outlook, Key Companies (Trane, Cold Shot Chillers, Tandem Chillers, and Others), Trends and Forecast 2024-2033

Chillers are mechanical devices used in industrial and commercial settings to cool fluids, often water or a glycol mixture. These are commonly used in air conditioning systems for buildings, and industrial processes where precise temperature control is needed. Furthermore, they play an important role in maintaining comfortable and controlled environments and also preserving product quality in various industries. 

Also, they come in different types and sizes, from small residential units to large-scale industrial systems. Chillers are used extensively in food processing and industrial applications. Demand for chillers is rising as industries prioritize environmental sustainability and energy efficiency.

The U.S. Chillers Market

The U.S. Chillers Market is anticipated to be valued at USD 2.8 billion in 2024 and is further expected to reach USD 4.1 billion by 2033, growing at a CAGR of 4.3%.

There is an increasing requirement for reliable cooling solutions to maintain optimal server performance with the proliferation of data centers, which driving the growth of the US chillers market as these are integral facilities that ensure efficient heat dissipation and operational reliability.

There is a growing trend of integrating IoT-enabled chillers with smart controls in the US. These advanced systems allow for remote monitoring and optimization, which significantly enhances operational efficiency across various industries, and drives the market.

Key Takeaways

• Market Growth: The global chillers market is projected to expand by USD 5.6 billion by 2033 from 2025, with a CAGR of 4.7 % during this period.
• Market Definition: Chillers are cooling devices that remove heat from liquids through vapor-compression or absorption refrigeration cycles.
• Product Analysis: The water-cooled chiller segment is expected to hold the largest market share of 63.1 % in 2024.
• Compressor Analysis: The screw chillers segment is expected to dominate the global market, capturing the largest share at 50.3% in 2024.
• Application Analysis: The commercial segment is expected to dominate the market based on application in 2024, accounting for the largest revenue share of 50.2%.
• Regional Analysis: Asia Pacific region is anticipated to dominate the global chiller market, accounting for 45.5% of revenue share in 2024.

Use Cases

• Industrial Applications of Chillers: Chillers are used to maintain specific temperatures for equipment and processes in manufacturing plants where they are responsible for controlling the temperature of chemical processes and overheating of equipment.
• Commercial HVAC Systems: They play a role in heating, ventilation, and air conditioning systems for large commercial buildings, hospitals, hotels, malls, and office complexes as they provide cool water that is circulated through air handling units to maintain comfortable indoor temperatures, particularly during hot weather.
• Chillers in Food Processing: Chillers are employed for various purposes such as cooling ingredients, freezing products, and maintaining storage temperatures.
• Medical Equipment Cooling Requirements: It is used in medical equipment that requires precise temperature control MRI machines generate a significant amount of heat during operation, and also chillers are used to cool the system and maintain stable temperatures for accurate imaging.

Market Dynamic

Drivers

Population Growth and Urbanization
The global chillers market is driven by factors like population growth, and urbanization which require chillers to live a comfortable life. There is a growing demand for comfort and leisure products like refrigerators and air conditioners due to an increased consumer income, which improves the standard of living. 

The growing healthcare and food industries are driving forces for the chillers market due to their stringent temperature control and preservation requirements. Additionally, increasing demand for cost-efficient and energy-saving cooling systems in commercial and industrial settings is anticipated to fuel the growth of chiller market in the future.

Rising Demand for Chillers in Emerging Sectors
Owners are opting for chillers with advanced technology and smart controls to ensure temperature control while minimizing environmental impact. Further, there is a stable demand for chillers in industries like hospitality, healthcare, and data centers. Furthermore, the demand for these is rising in industries like semiconductors, paper& cement, medical ranging, and power generation sectors which is predicted to expand the market.

Restraints

High Installation Costs of Industrial Chillers
The installation cost of an industrial chiller is high compared to a commercial setting with the same capacity which hinders the growth of the market. Also, smart chillers, equipped with IoT capabilities, and sensors, allow for remote monitoring and optimization which improves the overall system but these are costly which is hampering the market growth.

Opportunities

Rising Demand for Eco-Friendly Absorption Chillers
Growing demand for eco-friendly cooling equipment across many industries, including chemicals & petrochemicals, plastics, rubber, and medical & pharmaceutical sectors, increases the demand for absorption chillers. These chillers are becoming more popular because they produce minimal CO2 and other harmful gases. Also, government initiatives aimed at energy conservation and reducing emissions during the cooling process are further boosting the growth of the chillers market.

Sustainable Energy Systems Rely on Chiller Efficiency
Increasing awareness of energy efficiency is giving great opportunities to the chillers market, particularly within industrial energy efficiency services. Industrial equipment's energy efficiency is vital because it can reduce emissions and save costs over its lifetime. Energy efficiency is fundamental to a sustainable global energy system, emphasizing that conserving energy is the most cost-effective and environmentally friendly approach. Chillers account for over 40% of the energy needed for space conditioning in commercial and industrial buildings, and enhancing their efficiency can significantly lower energy bills.

Trends

Role of Chillers in Meat and Poultry Processing
Frozen food products, including frozen fruits & vegetables, ready-to-eat meals, seafood, meat & poultry, soups, and more, have become increasingly popular and require chillers to maintain low temperatures during various stages like slaughter, evisceration, and chilling, which helps prevent bacterial growth and ensures food safety.

Preference for Packaged Food and Hygiene Perception
The convenience offered by frozen fruits and vegetables has led to their increased acceptance among people with busy lifestyles, serving as healthy meal options. Many consumers in countries like India, China, the U.S., and Italy prefer packaged food due to its perceived hygiene, significantly contributing to the global chillers market's growth. The food and beverage industry's rising demand for chillers, driven by their adoption in breweries, distilleries, and food and dairy processing, further propels market growth.

Research Scope and Analysis

By Product

The water-cooled chiller segment is expected to hold the largest market share of 63.1 % in 2024 due to factors like its compact size, sustainability, and long lifespan. These chillers provide cooling capacity ranging from 10 to 4000 tons which is suitable for various applications, also they are suitable for indoor use and are commonly found in industrial settings such as chemical plants, manufacturing facilities, and medical facilities. This market is highly popular for handling high thermal output and wide cooling loads, making them a suitable choice for industries with cooling requirements.

Additionally, the demand for air-cooled chillers is anticipated to increase globally due to their ability to operate smoothly at low temperatures which is often used in commercial buildings such as offices, hotels, hospitals, and shopping centers to provide air conditioning. It is employed to cool server rooms and data centers where maintaining optimal temperatures is important for the performance of electronic equipment. Moreover, the increasing unavailability of water is expected to drive a rising preference for these chillers, as they do not depend on water for their operation.

By Compressor

The screw chillers segment is expected to dominate the market, capturing the largest share at 50.3% in 2024 due to its use in both ways, either air-cooled or water-cooled, depending on their specific roles and designs. Also, it consists of two helical slot rotors that compress refrigerant gases for cooling purposes, making them suitable for applications with power circulation needs. 

Furthermore, these chillers find extensive use in industries like chemicals, automotive, and printing due to their high energy-efficient cooling capabilities. In addition, centrifugal chillers are mainly used in the HVAC (Heating, ventilation, and air conditioning) sector, particularly for loads ranging from 300 to several thousand tons as the HVAC industry continues to grow globally, the demand for these chillers is predicted to rise. Also, the key players are actively introducing new products to meet the increasing demand for these chillers in the HVAC industry and to address cooling needs across various end-use sectors.

By Application

The commercial segment is expected to dominate the chillers market in 2024, accounting for the largest revenue share of 50.2% due to the construction of new buildings or the renovation of existing ones which drives the demand for chillers. Also, this segment requires comfortable indoor environments for consumers along with precise cooling for sensitive equipment and processes, driving the need for reliable and efficient chillers. 

Moreover, these chillers are used for cooling commercial buildings, effectively countering heat from internal and external sources like sunlight, wind, and outdoor temperature, as well as internal factors such as moisture, lighting, and equipment heat. Also, these are important for controlling temperature for various industrial processes and equipment. 

Further, they are used in manufacturing facilities, chemical plants, and other industrial environments to cool machinery, regulate temperatures, and ensure ideal production. Furthermore, they improve product quality by preventing overheating, maintaining consistency in manufacturing processes, and enabling precise temperature control.

The Chillers Market Report is segmented based on the following

By Product

• Water-Cooled
• Air -Cooled

By Compressor

• Screw Chillers
• Centrifugal Chillers
• Absorption Chillers
• Scroll Chillers
• Reciprocating Chillers

By Application

• Commercial
• Industrial
• Residential
• Others

Regional Analysis

Asia Pacific region is anticipated to dominate the market, accounting for 45.5% of revenue share in 2024 as it is the second largest hub for data centers, experiencing significant growth that boosts revenue and also creates new possibilities within the industry. Also, data center operations in Asia Pacific are expanding with operators actively trying new markets for potential growth. 

Additionally, the market in this region is fueled by anticipated higher demand from digitization and AI adoption, supported by improving economic conditions and rapid industrialization. Further, increasing construction activities, smart city projects, and rising tourism in this region are boosting the demand for this market. After Asia-Pacific, North America is the second-largest growing market due to rising investments in both public and private sectors.

Competitive Landscape

The chiller market is competitive due to the presence of global and local market players as companies are engaged in expansion through mergers & acquisitions and joint ventures. The major players in the industry focused on developing new products to strengthen their presence in the market. Also, key market distribute their diverse systems through various channels such as distributors, company-owned websites, retailers, and e-commerce platforms. Manufacturers of chillers market are seeing a rise in sales due to increasing industrialization.

 
For instance, In April 2021, Refra, a refrigeration equipment manufacturer, began production at its new Vievis facility near Vilnius, Lithuania which resulted in employment opportunities for an additional 100 individuals. Some of the players in the chillers market are Trane, Cold Shot Chillers, and Tandem Chillers. Key market players in the chillers are prominent in providing a wide range of chiller solutions tailored to various industrial, commercial, and residential applications worldwide.

Some of the prominent players in the global chillers market are

• Trane
• Cold Shot Chillers
• Tandem Chillers
• Drake Refrigeration, Inc
• Refra
• Carrier
• FRIGEL FIRENZE S.p.A.
• Midea
• Daikin Industries, Ltd.
• Johnson Controls
• Rite-Temp
• Others

Recent Development

• In February 2023, Daikin launched the second generation of cooling, only chiller range with R32 scroll blowers as it conveys high full, as it conveys high fully, and part load efficiencies with an expanded limit range of up to 1010 kW inside a new, reduced impression offering a decreased size of 275 mm.
• In February 2023, the YORK YLAA Air-Colled Scroll Chiller became the first air-cooled Scroll Chiller in the U.S. to use the refrigerant R-454R.
• In October 2022, Mitsubishi Electric launched the latest air-source chillers and heat pumps which were developed at the company's Italy-based facility.
• In December 2022, Trane introduced its newest products, the water-cooled XStream eXcellent GVWF and air-cooled Sintesis eXcellent GVAF chillers, which feature magnetic-bearing compressors and utilize the environmentally-friendly refrigerant R1234ze with low global warming potential.